Happy Thanksgiving and welcome to our November 26th, 2024 Commercial Pulse Report preview!
As the economy continues to evolve, the latest Commercial Pulse Report from Experian highlights some interesting trends in the housing market and for the many small businesses in the construction industry. These sectors are navigating complex challenges, showcasing resilience in the face of rising costs and changing market dynamics. Check out this week’s report for our deep dive on construction. Watch our short video below for a summary of what the latest report includes.
Watch Our Commercial Pulse Update
Construction Industry Highlights:
- 🔧 Adaptation in Financing: Construction businesses are shifting from term loans to commercial credit cards to manage costs.
- 🏗️ Controlled Delinquencies: While rising, construction delinquencies remain much lower than other industries, showing sector strength.
- 📊 High Demand Drives Growth: Despite challenges, the sector thrives due to strong housing demand.
Housing Market Highlights:
- 🏠 Affordability Challenges: Housing costs are rising faster than incomes, forcing many households to allocate more of their earnings to housing.
- 📈 Rent Inflation Soars: Since 2020, monthly rents have increased by 127%, adding strain to renters nationwide.
- 💸 Mortgage Payments Surge: High property prices and 6.4% mortgage rates have driven average payments to record highs.
- 🌟 Resilient Demand: Despite challenges, home sales rose 5% year-over-year, signaling robust buyer interest.
- 🚀 Relief Ahead? Potential interest rate cuts and increased homebuilding activity could balance the market.
Experian Commercial Pulse Report Explores Implications of Rising Premiums As the year draws to a close, one issue looms large for millions of small business owners: the rising cost of healthcare. According to the latest Experian Commercial Pulse Report, small business survival may soon hinge on a single factor — whether enhanced Affordable Care Act (ACA) subsidies are extended into 2026. Watch the Commercial Pulse Update The Clock Is Ticking on ACA Subsidies The American Rescue Plan and Inflation Reduction Act temporarily expanded ACA subsidies, helping make coverage more affordable for millions. But those enhancements are set to expire at the end of 2025 — a policy shift that could unleash a wave of economic strain. The Kaiser Family Foundation estimates that if these subsidies lapse, individuals who purchase insurance through the ACA marketplace could see a 75% increase in premiums. Why does this matter so much for small businesses? Because half of all ACA marketplace enrollees are small business owners, entrepreneurs, or their employees. Coverage Is Shrinking, and Costs Keep Climbing Smaller businesses have historically been less likely to offer health insurance benefits than their larger counterparts. In 2025, only 64% of businesses with 25 to 49 employees offer health benefits — the lowest level ever recorded. And while large employers are still required by the ACA to offer coverage to full-time workers, they too are feeling the pressure. Since 2010, employers have gradually reduced the share of healthcare premiums they cover, even as deductibles have risen by 164% for single coverage plans. The result? Business owners are being squeezed from both sides — by rising insurance costs and a more financially stressed workforce. The Ripple Effects Could Be Widespread If enhanced subsidies aren’t renewed, many small businesses may have no choice but to: Shut down operations Cut staff Shift jobs into larger organizations that can offer coverage That would be a blow not only to small business dynamism but also to broader economic sectors. Reduced consumer spending could hit industries like retail, real estate, and manufacturing, while healthcare providers face payment cuts and job losses due to shrinking coverage pools. What’s Next? With Congress set to vote on subsidy extensions before the end of the year, the stakes couldn’t be higher. The outcome will likely define affordability, access, and entrepreneurship for years to come. For small business owners, now is the time to assess your coverage plans, understand your employee needs, and prepare for potential cost increases. For policymakers and industry leaders, it’s a critical moment to ensure healthcare reforms continue to support the backbone of the U.S. economy — small businesses. Experian continues to provide actionable data to help businesses, lenders, and policymakers navigate uncertainty. To access the full Commercial Pulse Report and explore more insights on small business credit and sector-specific performance: ✔ Visit our Commercial Insights Hub for in-depth reports and expert analysis. ✔ Subscribe to our YouTube channel for regular updates on small business trends. ✔ Connect with your Experian account team to explore how data-driven insights can help your business grow. Download the Commercial Pulse Report Visit Commercial Insights Hub Related Posts
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